Continuing Export Growth... "Rising Raw Material and Logistics Costs Are Burdens"

Exports from June 1 to 20 Reach $32.4 Billion... Up 29.5% YoY
Export Industry Business Outlook Index Surpasses 110 for Three Consecutive Quarters
KITA: Companies Cite Rising Raw Material Prices and Logistics Costs as Export Challenges

[Asia Economy Reporter Joo Sang-don] Exports in June have continued their strong performance, increasing by nearly 30% through the 20th. If this trend continues, the export growth that began in November is likely to extend for eight consecutive months. However, companies pointed to rising raw material prices and logistics costs as challenges to exports.

According to the Korea Customs Service on the 27th, export value (provisional customs clearance basis) from June 1 to 20 reached $32.4 billion, up 29.5% ($7.38 billion) compared to the same period last year. Semiconductors (28.5%), passenger cars (62.2%), and petroleum products (58.6%) led the growth. Conversely, exports of ships (-27.7%) and computer peripherals (-4.2%) declined. Exports to major countries such as China (7.9%), the United States (41.3%), and the European Union (EU, 48.8%) increased.

The outlook for the third quarter is also positive. According to the "3rd Quarter Export Industry Business Outlook Survey" conducted and analyzed by the Korea International Trade Association’s International Trade and Commerce Research Institute targeting 1,201 domestic export companies, the Export Business Survey Index (EBSI) stood at 113.5, surpassing 110 for the third consecutive quarter following 112.1 in Q1 and 120.8 in Q2. An index above 100 indicates expectations that export conditions will improve compared to the present.

By product category, with the continued rise in oil prices and global demand recovery, exports of 12 out of the 15 major items are expected to increase, including automobiles and auto parts (145.5), ships (135.3), and petroleum products (134.2). In particular, for automobiles, exports of sport utility vehicles (SUVs) and electric vehicles are expected to stand out; for ships, liquefied natural gas (LNG) carriers and ultra-large container ships; and for petroleum products, aviation fuel and heavy oil used as transportation fuels are expected to drive export growth.

Companies identified "rising raw material prices" (24.6%) and "increasing logistics costs" (22.4%) as export challenges for the third quarter. These figures rose by 3.5 percentage points and 2.1 percentage points, respectively, compared to the second quarter.

Do Won-bin, a researcher at KITA, stated, "The Q3 EBSI improved compared to the previous quarter, indicating that the export environment is expected to continue its recovery trend," adding, "Survey results on export challenges show that difficulties caused by rising raw material prices and logistics costs are ongoing."

This content was produced with the assistance of AI translation services.